Developer to pay £3.5m for affordable housing after approval of 376-home build-to-rent scheme

A total of 117 affordable homes are required to meet the council’s housing policy (31% affordable at least), but none have been proposed.

Milton Keynes City Council told Inside Housing the developer has agreed to pay £2.88m to support the delivery of necessary infrastructure and a further £3.5m towards providing affordable housing in another part of the city in lieu of on-site affordable housing.

Graham Haydon-White, managing director of Zephyr X Developments, said: “Our vision for 500 Avebury Boulevard is not just about building apartments, but creating a community that enhances the lifestyle of its residents and integrates seamlessly with the dynamism of Milton Keynes.

“We are very grateful for the support of Milton Keynes City Council and we look forward to making a start on site in the new year.”

CBRE is the acting agent on the development. Three weeks ago, Zephyr X also received approval for a 23-storey, 237-home build-to-rent development in Manchester.

The UK build-to-rent market is currently valued at £62bn, according to BNP Paribas, with 232,000 homes across 1,100 schemes. The bank estimates that the market could grow by 56%, to £97bn, by 2029.

Cross-party research from last year revealed just 11% of MPs would prioritise the development of new build-to-rent homes in their constituencies.

While the sector has experienced record completions in 2024, its construction pipeline has shrunk by a fifth, according to Savills.

Despite the overall picture, large build-to-rent landlord Grainger revealed at the end of last month that it built up a £1.4bn development pipeline during 2023-24, totalling 4,730 new homes.